New Regulations for Tiangge or Privilege Stores

On 22 August 2013, the Bureau of Internal Revenue (BIR) issued a new set of regulations that cover tiangge or privilege stores, basically the payment of business/income taxes and the obligations of organizers/exhibitors/operators of the tiangge. This is Revenue Regulation No. 16-2013. RR 16-2013 provides that it shall take effect 15 days after its publication in a newspaper of general circulation. Since it was published in the Manila Bulletin on 27 September 2013, it took effect effect on 12 October 2013.

A privilege store, popularly known as tiangge, refers to a “stall or outlet which is not permanently fixed to the ground and is normally set up in places like shopping malls, hospitals, office buildings, hotels, villages or subdivisions, churches, parks, streets and other public places, for the purpose of selling a variety of goods/services for short durations of time or during special events (including festivals, fiestas, etc.).” A tiangge may also be called bazaar or some other names.

An integral part in the characterization of a tiangge, for purposes of coverage under RR 16-2013, is the requirement that any business activity shall not be more than fifteen (15) days. The 15-day period is CUMULATIVE for any taxable year. However, if the tiangge is operating more than one (1) business activity in a separate venue or simultaneously operating several or multiple business activities in one (1) venue, it shall be considered one (1) day per business activity in the computation of cumulative number of days in a given taxable year. Where the business activity exceeds 15 days, a tiangge organizer or tiangge seller is considered a regular taxpayer.

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